Question 19 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 19 Chapter 8 of +2-A

19. Varun ltd. Issued Rs 1,00,000 shares of Rs 100 each at a premium of Rs 20 for subscription payables as :

On application	Rs 10  per share
On allotment(including premium )	Rs 40 per share + Rs 10 of premium
On the first and final call.	Rs 50 per share +Rs 10 of premium

Overpayment on the application was to be applied towards the amount due on allotment and overpayment on the application were to be returned issue was t be returned issue was oversubscribed to the extent of 13,000 shares. Applicants for 12000 shares were allotted only 1000 shares and Applicants for 2000 shares were sent letters of regret. All the money due on the allotment and final call was duly received

Pass necessary entries in the company’s books to record the above transactions. Also, prepare the company’s balance sheet on completion of the above transactions.
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The solution of Question 19 Chapter 8 of +2-A: - 

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		1,30,000
	To equity share application A/c				1,30,000
	(Being the application money received )
	Equity Share application A/c	Dr.		1,30,000
	To Equity share capital A/c				1,00,000
	To Cash A/c				30,000
	(Being application money transferred to equity share capital )
	Equity Share allotment A/c	Dr		5,00,000
	To Share capital A/c				4,00,000
	To Equity Share premium A/c				1,00,000
	(Being the allotment money due )
	Cash A/c	Dr		5,00,000
	To Equity Share allotment A/c				5,00,000
	(Being application money transferred to equity share capital )
	Share first and final call A/c	Dr.		6,00,000
	To Share capital A/c				5,00,000
	To Equity share premium A/c				1,00,000
	(Being the first call money due )
	Cash A/c	Dr.		6,00,000
	To Share first and final call A/c				6,00,000
	(Being first and final call money received )

 

 

Cash Book		Cr.
Particulars (1)	Note no. (2)	Figures as at the end of the Previous Reporting Period (3)
I. Equity and Liabilities
1. Shareholders’ Funds
(a) Share Capital	(1)	12,00,000
		12,00,000

 

Equity share capital A/c		Cr.
Particulars	Particulars	Amount
Share capital
Authorized capital
10,000 Equity share of Rs 100 each		10,00,000
Issued capital
10,000 equity shares of Rs 100 each		10,00,000
Subscribed capital
Subscribed and fully paid-up
10,000 Equity shares of Rs 10 each
On application (10,000 *Rs 10 each )	1,00,000
On allotment (10,000 *Rs 40 each + premium Rs 10 )	5,00,000
On first call (10,000 *Rs 50 each + premium RS 10 )	6,00,000
		12,00,00
share capital (subscribed)		12,00,00

 

 

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication